I have received a couple of PMs in the last couple of weeks, asking for my advice on buying and trading Games & DVDs (I hope you found my replies useful), so I thought I would spend 20 minutes writing some guidelines that may be of use to others looking to get into the pre-owned games market.
First of all I think I should point out there is no magic formula. No set rules. It depends on what your buying and your overall business model. I know people who will only buy at a set price. There is no negotiating. I am happy to pay a little extra to get good quality stock.
On my stall, as a general rule, I would pay no more than 40% for slow moving titles, I try to double my money on middle of the road titles, but would be happy to pay 60% for newer titles.....maybe even more. Consoles, I aim for about a 30% mark up. I tend not to negotiate as much when buying at the market.
If your putting an ad in the loot or similar, You will need to be flexible. always go in with a slightly lower price than you want to pay. Dont be afraid to value rubbish titles (such as FIFA 06 etc) at £0. There is little point paying for something hat you have no chance of selling, however when buying in bulk, you will always see the same slow selling titles popping up.
When buying in bulk, you need to be able to quickly pick out the quick selling titles..... Put them into piles and tell tem that you will pay £5 each for this pile,£7 each for this pile but only £1 each for this pile etc...This will allow you to quickly work out how much you can earn and how much to offer.
I always ask "do you have any idea what you want for them".....if nothing else it gives you a ball park figure. Few people will actually tell you but its always better to get a price from the seller if you can.
Keep an eye on the competition......If your buying from the loot or free ads papers, It might be worth ringing up some other buyers from the same paper (or get someone else to
). It will give you an idea of the going rate, It will vary from area to area. If you are buying on the local market or your own B&M shop, check out all the buy and trade in prices from all your competitors. Also check the buying prices for your local Cash converters/Cash generators. Sites such as CEX are also good for keeping up to date with prices.
When buying DVDs, I always make a point of saying something along the lines of "most people are selling off there DVDs now and replacing them with blu-rays" or "I don't sell half as many DVDs as I used to do" .....gives them the impression they are not worth too much without actually saying so.
When people ring up the small adds, they are usually wanting some quick cash.....Some people want silly money buy most are happy with making a few quid.
If people call and you are going to collect, get an idea of what they have before you set off and check the prices (obviously you cant expect them to to go through a list of 200 DVDs) then check the prices on line before you set off. You will know how much you can sell them for, half it and this can be your starting point......this is a very rough rule and like I said, be flexible.
For example If you know you can sell all the stock for £100, you offer £50 and he wants £60 then £40 is still a bigger mark up than you would make with new products. Even £30 providing you KNOW you can shift the stock...
Trade ins...I ave covered this before on another thread, so I will keep this breif, n the market I offer £3 trade ins on games and £1 trade ins on DVDs. This has never been beaten in my local area and has won me many regular customer..... The bread and butter customers during the quite periods.
Always have a selection of new releases too. you will be surprised how many people are happy to trade in a bag full of their old games and DVDs for one shiny new one. It is, in my opinion, the best way to generate a regular stream of titles.
When buying pre-owned stock there are a couple of things that you should consider. The first thing is the mst obvious. Check the quality of the stock. If your buying games & DVDs then check the discs. Don't be afraid to buy them if they have a scuff here and there. Discs can be repaired. I usually offer slightly less for stock that may need repairing to cover my costs. If the game has a book missing. again, don't worry. you can still sell it, just offer less money.
Safty First.....My advice, would be to keep records. If buying for cash (especially for high value items such as consoles, phones etc) don't be afraid to ask for ID. This will cover you if they turn out to be stolen. Write down any serial numbers, write down what ID was shown (this could be anything from a bank card to a utility bill) write down contact details and get them to sign it.
As I said at the beginning, there is no hard and fast rule, but I hope some of my suggestions and experiences point you in the right direction.
Happy buying
Guidelines on Buying and Trading Pre-Owned Games & DVDs
Linear Mode
November 2009
